ArcelorMittal group firm wins transfer pricing litigation in Romania

Newsroom 12/07/2016 | 11:47

Judges at Romania’s High Court decided to maintain the cancellation of administrative acts issued by the inspection body with the consequent cancellation of tax loss decrease worth RON 5.6 million for one of the firms within the ArcelorMittal group, said professional services firm EY Romania, which worked on this case with Radu si Asociatii SPRL, the coressponding law firm of EY Romania.

The judges maintained a previous ruling on the price of transactions between affiliates at steel maker ArcelorMittal. The High Court said that the expenses established by tax inspectors are deductible.

„The practice has shown us that the transfer prices are an area of interest for fiscal inspections carried out by ANAF.  Once the number and intensity of this controls has increased while the the tax inspectors have become more experienced on transfer prices, we can see that the number and value of adjustments on transfer prices and the penalties imposed by the fiscal authorities have growth singnificantly,” said Adrian Rus, partner at EY and the leader of the transfer pricing department.

The ruling announced on June 30 establishes reference points for the correct application of fair transfer pricing principles such as the the geographical or independence provision when searching a comparable company or the usage of different reference data for analysing the profitability of comparable companies, according to EY.

Ovidiu Posirca

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